HKEX(HK:00388) Sou Hu Cai Jing·2025-09-26 01:20Core Points - The core focus of the HKEX IPO process revolves around compliance, transparency, sustainability, and market acceptance [5] Financial Metrics and Profitability - HKEX has specific financial requirements for IPO applicants, including cumulative profits of at least 50 million HKD over the last three years, with at least 20 million HKD in the most recent year [3] - Different tests apply for various sectors, with a focus on the authenticity and sustainability of profits [3] Information Disclosure and Transparency - The principle of "disclosure-based" is emphasized, requiring issuers to provide full, accurate, and timely information to avoid misleading investors [2] Corporate Governance and Independence - Issuers must have a sound corporate governance structure to protect minority shareholders from potential harm by controlling shareholders or management [2] Business Model and Sustainability - The sustainability of business models, especially for new economy companies, is a key focus, including aspects like patent numbers and user engagement metrics [2] Industry Regulation and Compliance - Issuers must comply with both domestic and international regulatory requirements, particularly if their business involves specific sectors like finance or healthcare [4] Related Party Transactions and Interest Transfer - HKEX imposes strict regulations on related party transactions to prevent harm to minority shareholders [4] Use of Proceeds - Issuers are required to disclose the specific and reasonable use of raised funds [4] Shareholder Structure and Equity Arrangement - The structure of shareholders must avoid instability in control or conflicts of interest [4] Financial Statements and Auditing - Ensuring the authenticity of financial data is crucial, with a focus on the qualifications of auditing firms [4] Special Arrangements for New Economy - HKEX has introduced special rules to attract new economy companies, which also brings additional scrutiny [4] Cross-Border Regulation and Data Security - Companies with mainland operations must navigate regulatory coordination between regions [4] Responsibilities of Intermediaries - Intermediaries like sponsors, lawyers, and accountants must fulfill their due diligence responsibilities [5][6] Market Acceptance and Valuation - The market shows a preference for sectors like technology, consumption, healthcare, and renewable energy, while traditional industries may face lower valuations [6] Ongoing Obligations Post-IPO - Issuers must continue to comply with HKEX's ongoing listing obligations after the IPO [5]